Ministry of New and Renewable Energy
Central Financial Assistance provided to States for Promotion of Solar Energy
The government provides financial assistance to various states under different schemes. The details of major operational schemes are given at Annexure –I.
The details of Central Financial Assistance provided to the States of Rajasthan, Maharashtra, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Gujarat, etc. during the last 4 year and the current year are given at Annexure-II.
Solar energy is being generated across all these States.
DETAILS OF SCHEMES PRESENTLY OPERATIONAL AND AVAILABLE CENTRAL FINANCIAL ASSISTANCE
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Scheme
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Application
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CFA pattern
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a) Scheme for development of Solar Parks and Ultra Mega Solar Power Projects
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Setting up of at least 50 solar
parks of 40,000 MW capacity in the Country
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Rs. 20 Lakh per MW or 30% of the project cost, whichever is lower. Also, up to Rs. 25 lakhs per Solar park for preparation of Detailed Project Report .
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b) CPSU Scheme Phase- II

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Total size of the scheme: 12000 MW
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Viability Gap Funding  of up to Rs. 0.7 Cr./MW  / Rs 0.55 crore/MW  is provided. Use of domestically manufactured solar PV cells and modules is mandatory.
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C) Phase-II of Grid Connected Rooftop Programme
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4000 MW in
residential sector
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The CFA amount for the RTS capacity installed by a consumer is common for entire country which is as under:
- Individual Household - For first 3 kW: Rs. 14588/ kW and for RTS capacity beyond 3 kW and upto 10 kW: Rs. 7294/kW.
- Resident Welfare Associations/Group Housing Societies  - Rs. 7294/kW for common facilities up to 500 kWp @ 10 kWp per house.
CFA for residential consumers of North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, UT of Jammu & Kashmir, Ladakh,
Lakshadweep, and Andaman & Nicobar Islands.
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Scheme
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Application
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CFA pattern
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All residential consumers of these states/UTs applying for installation of rooftop solar on the National Portal for Rooftop Solar on or after date of issuance of this OM will be eligible to get higher CFA as mentioned below.: . Individual Household - For first 3 kW: Rs. 17662/ kW and for RTS capacity beyond 3 kW and upto 10 kW: Rs. 8831/kW.
. Resident Welfare Associations/Group Housing Societies  - Rs. 8831/kW for common facilities up to 500 kWp @ 10 kWp per house.
Further, incentive is being provided to Discoms based on percentage of year- wise installed capacity achieved against previous year’s cumulative installation.
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d) Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan 
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- Component- A: 10 GW Installation of Renewable power plants  up to 2 MW capacity on barren/agricul ture land.
- Component- B: Installation
of 20 lakh
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For Component-A, DISCOM would be eligible to get Procurement Based Incentive  @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the commercial operation date.
For Components-B and C, CFA of 30% of the benchmark cost or the tender cost of standalone pump or solarization of existing pump, whichever is lower, will be provided to the beneficiary. However, in North Eastern states including Sikkim; states of Himachal Pradesh and Uttarakhand; UTs of Jammu & Kashmir and Ladakh; and island UTs of
Lakshadweep and A&N, CFA of 50% of the
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Scheme
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Application
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CFA pattern
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standalone solar pumps up to 7.5 HP capacity each for irrigation purpose
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benchmark cost or the tender cost, whichever is lower will be provided.
The State Government will also provide subsidy of 30% of the cost of standalone pump/ Solarization, or higher. State may also opt for feeder level
Solarization under Component-C.
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 Component- C: Solarization of 15 lakh existing agricultural pumps up to
7.5 HP capacities each.
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e) Production
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To promote
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The Scheme has provision for PLI (Tranche-I: Rs
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Linked Incentive
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manufacturing of
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4500 crore Tranche-II: Rs 19500 crore) to the
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 Scheme
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high efficiency
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selected solar PV module manufacturers for five
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‘National
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solar PV modules
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years post commissioning, on manufacture and sale
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Programme on
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in the country
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of High Efficiency Solar PV modules. The quantum
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High Efficiency
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of PLI eligible for disbursal depends upon: 
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Solar PV
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quantum of sales of solar PV modules; 
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Modules’
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performance parameters (efficiency and temperature
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coefficient of maximum power) of solar PV modules
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sold; and  percentage of local value addition in
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modules sold.
DETAILS OF CFA PROVIDED IN SOLAR SCHEMES TO STATES OF RAJASTHAN, MAHARASHTRA, HARYANA, PUNJAB, UTTAR PRADESH, MADHYA PRADESH, GUJARAT DURING LAST 4 YEAR AND THE CURRENT YEAR

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S. No.
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State
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2018-19
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2019-20
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2020-21
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2021-22
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2022-23
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1
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Gujarat
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417.99
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81.19
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101.30
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1242.71
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1114.65
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2
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Haryana
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27.50
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22.44
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65.89
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175.08
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118.18
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3
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Madhya Pradesh
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132.90
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159.33
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93.69
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64.95
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170.14
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4
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Maharashtra
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182.63
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117.32
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114.48
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95.16
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304.58
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5
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Punjab
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39.54
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25.94
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31.85
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65.60
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55.93
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6
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Rajasthan
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237.01
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213.31
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668.67
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305.84
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258.84
This information was given by the Union Minister of Power Sh. R.K. Singh in the Rajya Sabha Today.